Investment trusts: interest distributions: notification of interest distributions
Under regulation 6 SI2009/2034 if a company designates part or all of its dividend as an interest distribution in respect of an accounting period (AP), then it must notify in writing to HMRC, when it submits its application to be an approved investment trust that:
- it has made or will make interest distributions in respect of an AP as permitted by SI2009/2034; and
- the total amount of the interest distribution that has or will be made in respect of the AP.
Please note that where an interest distribution has not been made by the time the application has been submitted, then it must be distributed out to investors on or before the first anniversary of the day in which the period of account (PoA) ends, as per regulation 4(1)(c) SI2009/2034, see CTM47510. (Commercially, this will usually mean that a distribution must be made to shareholders within 12 months of the end of the AP in which it relates, ending on the same day as the PoA.)